3 rules cap a Singapore home loan: the total debt servicing ratio (TDSR), the mortgage servicing ratio (MSR) and the loan-to-value (LTV) limit.
Reviewed by the Swee Homes data desk on 7 Oct 2026. Sources: MAS, HDB. Next check due 5 Jan 2027.
TDSR: the cap on all your debt repayments
TDSR looks at every debt a borrower has, not only the home loan.
For property loans where the Option to Purchase is granted on or after 16 December 2021, the total debt servicing ratio (TDSR) threshold is set at a maximum of 55% of the borrower's monthly income. Monthly debt obligations count towards this threshold.
TDSR = (borrower's total monthly debt obligations / borrower's gross monthly income) x 100%.
Monthly debt includes all outstanding debt obligations: property-related loans including the loan being applied for, car loans, student loans, renovation loans, credit card loans, and any other secured or unsecured loans, including revolving loans.
MAS example: if a borrower has existing monthly debt obligations equal to 10% of their monthly income, the maximum they can get for a property loan is based on 45% of their monthly income.
Gross monthly income is the borrower's monthly income before tax and excludes any CPF contribution made by the employer. Banks must apply a minimum haircut of 30% to variable income (for example commission, bonus and allowance) and to rental income.
MAS expects property loans subject to TDSR not to exceed the 55% threshold. Loans above 55% should only be granted in exceptional cases, with enhanced credit evaluation, a debt reduction plan and reporting to MAS.
Who TDSR applies to
TDSR applies to any individual applying for a loan to purchase a property or a loan secured by a property, and to refinancing of these loans. It applies to residential and non-residential properties, in and outside Singapore. It does not apply to loans for companies, but a sole proprietor, or an individual setting up a company solely to purchase property, is assessed as an individual.
MAS's rules for new housing loans apply to banks, finance companies and merchant banks. For housing loans provided by HDB, MAS directs readers to HDB's website.
MSR: the extra cap for HDB flats and executive condominiums
MSR is narrower than TDSR. It counts property loans only.
Mortgage servicing ratio (MSR) is capped at 30% of a borrower's gross monthly income. It applies only to housing loans for the purchase of an HDB flat, or an executive condominium where the minimum occupation period of the executive condominium has not expired.
MSR counts the portion of gross monthly income that goes towards repaying all the borrower's property loans, including the loan being applied for, plus at least 20% of the monthly debt obligation for any property loan where the borrower is a guarantor. MSR = (monthly repayment instalments for all property loans / gross monthly income) x 100%, which must be 30% or lower.
The MSR rule and the TDSR rule are separate tests set out together on MAS's page for new housing loans: a borrower's TDSR should be less than or equal to 55%, and for HDB flats and eligible executive condominiums the MSR must also be within 30%.
MAS Notice 645 (Computation of Total Debt Servicing Ratio for Property Loans) was last revised on 21 August 2025. It sets out the formula and parameters banks use for TDSR and spells out the limit on monthly repayment instalments for the purchase of HDB flats and executive condominiums.
The interest rate banks must use to test TDSR
Banks do not test a borrower at the rate printed on the loan offer. They test at a higher, medium-term rate, so that the loan stays affordable if rates rise.
When calculating monthly interest payable, banks base the calculation on a medium-term interest rate, applied only to the property purchase loan under application. For residential property purchase loans and mortgage equity withdrawal loans, it is the higher of a 4% floor or the thereafter interest rate.
The thereafter interest rate is the highest interest rate offered by the bank at any time during the tenure of the loan, typically charged after the introductory or lock-in period. Where it is pegged to a floating reference rate, the bank computes it using the reference rate as of the date of loan application plus the spread.
This is a test rate for the TDSR calculation. It is not the rate the borrower pays, and this page does not print any bank's current interest rate.
LTV limits and minimum cash downpayment for bank loans
The limit depends on how many housing loans the borrower already has.
Loan-to-value (LTV) is the loan amount as a percentage of the property's value. MAS example: borrowing $150,000 to buy a property valued at $1,000,000 is an LTV of 15%.
For loans on residential properties where the Option to Purchase is granted on or after 6 July 2018, the LTV limit for individuals is: no outstanding housing loan, 75% or 55% (minimum cash downpayment 5% for an LTV of 75%, 10% for an LTV of 55%); 1 outstanding housing loan, 45% or 25% (minimum cash downpayment 25%); 2 or more outstanding housing loans, 35% or 15% (minimum cash downpayment 25%).
The lower LTV limit in each pair applies if the loan tenure exceeds 30 years (or 25 years for HDB flats), or if the loan period extends beyond the borrower's age of 65 years.
For joint borrowers, the bank uses their income-weighted average age as their present age.
If the borrower is a shell company or not an individual, the LTV limit is 15%.
Loan tenure for bank loans
The maximum loan tenure for housing loans from banks and finance companies is 30 years for HDB flats and 35 years for non-HDB properties.
The HDB housing loan: the basics
A housing loan is not needed if the buyer has enough cash and/or CPF savings to pay for the flat in full.
An HDB housing loan is a separate loan from HDB itself. It is not a bank loan, so MAS's bank rules above are not the rules for it.
An HDB Flat Eligibility (HFE) letter tells the applicant upfront whether they are eligible to buy a new or resale flat, and the amount of housing grants and HDB housing loan they are eligible for. An applicant who wishes to take an HDB housing loan must first apply for an HFE letter.
To be eligible for an HDB housing loan, at least 1 applicant must be a Singapore Citizen, and the core family nucleus in the HFE letter application must not have taken 2 or more housing loans from HDB. The average gross monthly household income must not exceed $16,000 for families, $24,000 for extended families, or $8,000 for singles buying under the Single Singapore Citizen Scheme. Applicants also need to meet HDB's credit assessment criteria and must be working at the point of HFE letter application and when the loan is disbursed.
HDB housing loans are not available for the purchase of 2-room Flexi flats on short lease or Community Care Apartments; the purchase is paid with cash and/or CPF Ordinary Account savings. HDB does not provide housing loans for the purchase of Executive Condominium units from property developers.
HDB assesses the loan amount on the applicants' age, monthly income, job stability, current loans and financial commitments, past repayment records and monthly cash savings.
HDB loan: amount, tenure and interest rate
HDB housing loan LTV limit: up to 75% of the flat purchase price for new flats, and up to 75% of the lower of the resale price or value of the flat for resale flats. If the remaining lease does not cover the youngest applicant to age 95 or above, the limit is pro-rated from 75%. This applies to complete resale applications received by HDB on or after 20 August 2024 and flat applications for the October 2024 sales exercise onwards.
The HDB housing loan repayment period is capped at whichever is the shortest of: 25 years; 65 years minus the average age of the applicants; or the remaining lease of the flat minus 20 years.
Monthly instalments on an HDB housing loan: up to 30% of the applicants' monthly income.
The HDB concessionary interest rate is pegged at 0.10% above the prevailing CPF Ordinary Account interest rate, and may be adjusted in January, April, July and October in line with CPF interest rate revisions.
HDB's stated concessionary interest rate is 2.60% per annum for 1 July 2026 to 30 September 2026 and 2.60% per annum for 1 October 2026 to 31 December 2026. The rate is the same for both quarters.
To compute the eligible HDB housing loan amount, HDB uses the higher of its interest rate floor (currently 3.0% per annum) and the prevailing HDB housing loan interest rate.
Applicants taking an HDB housing loan may retain up to $20,000 of the available savings in each of their CPF Ordinary Account. The remaining balance in the CPF OA must be used to pay for the flat purchase before the HDB housing loan can be granted. The limit applies to each applicant's own account.
A second HDB housing loan is granted only after the applicant has paid for the flat using the full CPF refund and part of the cash proceeds from disposing of the previous flat or private residential property. Once an HDB housing loan is disbursed, the applicant cannot take up another HDB housing loan for 30 months from the legal completion of the flat purchase.
How the HDB loan and a bank loan differ
The same flat can be financed either way, if the buyer is eligible for both.
For a flat purchase with a bank loan, HDB states the repayment period is up to 30 years, the LTV limit is up to 75% (of the flat price for new flats, and of the lower of resale price and value for resale flats), and at least 5% of the flat price or value (whichever is lower) must be paid in cash. Banks may have restrictions for flats with shorter remaining leases, for repayment periods over 25 years, or where the buyer has additional housing loans.
For a housing loan from a financial institution, the interest rate varies among financial institutions and may change with market conditions. HDB's Flat Portal lets buyers view and compare packages from the participating financial institutions.
A buyer taking a bank loan must have a valid Letter of Offer from the bank before signing the Agreement for Lease for a new flat or exercising the Option to Purchase for a resale flat.
A buyer can refinance a bank housing loan with one from another bank or a different interest rate package, but cannot refinance to an HDB housing loan.
Common questions
What is the TDSR limit for a home loan in Singapore?
MAS sets it, and it counts every monthly debt, not only the home loan. For property loans where the Option to Purchase is granted on or after 16 December 2021, the total debt servicing ratio (TDSR) threshold is set at a maximum of 55% of the borrower's monthly income. Monthly debt obligations count towards this threshold.
What is MSR, and which properties does it apply to?
It is a second cap that applies only to HDB flats and to executive condominiums still within their minimum occupation period. Mortgage servicing ratio (MSR) is capped at 30% of a borrower's gross monthly income. It applies only to housing loans for the purchase of an HDB flat, or an executive condominium where the minimum occupation period of the executive condominium has not expired.
What LTV limit applies if I already have a housing loan?
It is lower than for a first loan, and falls again with each loan you already have; the limits are set out under loan-to-value on this page. The lower LTV limit in each pair applies if the loan tenure exceeds 30 years (or 25 years for HDB flats), or if the loan period extends beyond the borrower's age of 65 years.
What interest rate do banks use to work out TDSR?
Banks use a medium-term test rate, not the rate on the loan offer. When calculating monthly interest payable, banks base the calculation on a medium-term interest rate, applied only to the property purchase loan under application. For residential property purchase loans and mortgage equity withdrawal loans, it is the higher of a 4% floor or the thereafter interest rate.
How long can I take an HDB housing loan for?
The repayment period depends on the borrowers' ages and the flat's remaining lease. The HDB housing loan repayment period is capped at whichever is the shortest of: 25 years; 65 years minus the average age of the applicants; or the remaining lease of the flat minus 20 years.
How much can I borrow myself?
Your bank or HDB works it out from your income, debts, age and the property. Your HFE letter states the HDB housing loan you are eligible for.
Where to go next
Related guides
- Am I eligible for a resale flat, and which grants can I get?
- How does an HDB resale flat purchase run, step by step?
- How much stamp duty will I pay on a home?
- How much CPF can I use to buy a home, and how much goes back to CPF when I sell?
About the data
Every figure on this page has its source and the date we checked it. We are not affiliated with any government body. General information, not financial advice.